Leadership Lessons For The Senior Class

Leadership Lessons For The Senior Class

Face up to your creditors… with humility.

Sometimes when you are running a business, things don’t always work out the way you planned. You might find yourself having borrowed some money, or taken some goods on credit; then that payment you were expecting does not come through! And now you owe money, lots of money, and the creditors begin to chase you for the money!

What must you do?

First of all let me tell you something; there is no businessman or woman, who has not had this experience. It might be with a supplier, to your business, or even a bank. It can happen to you, whether you are small or big. The most important thing to always keep in mind, when you are in this situation, is not to lose sight of the fact, that the other party, once TRUSTED you by giving you goods on credit, or by giving you a loan. So don’t get angry with them, and say, “why are you bothering me, now; didn’t I say you will get it, when I have it?!” Then you cut off the phone, or slam the door.
That is wrong…..

How you respond to such a situation will not only test your character, but will decide how successful or big, you are going to be, in future. Go to the biggest and most successful business person, anywhere in the world. They will tell you what am going to tell you now:

1. Always treat your creditors with the most utmost respect, for the trust they had in you.

2. Be quick to apologise, for the situation. Even if the other party is angry and abusive, do not retaliate.

3. Do not default, under any circumstances. And by this, I mean that if you had an agreed payment date. The moment it becomes clear that you are not going to make that payment, go and see them, and tell them. Do this well in advance, giving the other party time, to make alternative arrangements. Do everything you can to get them to agree a new date. Never default, by ignoring the dates.

4. When dealing with a creditor,in this situation, always go and see them. Do not write and do not phone. Let them see you.

5. Don’t demonise your creditors, or lenders.

Work with creditors and bankers, as partners. Always make them feel this way. It will do you wonders.

If you think this is tough, then you are not yet tough enough for the big time. This is what it is about.

One more part to come, for now.